Trading Record: 5 Lessons Concluded from 3-year Trading Experience!

My name is Julia, a Russian trader. All my efforts spent in my three-year forex trading experience have ended up with failure. My lessons are summarized herein.

1. Error in carrying out the contract entered into with a forex broker

I was not aware of the account threshold for executing transactions and charges such as commissions at the beginning, thus failing to select a proper forex broker and spending a lot.

Lessons are listed as follows:

• Read all terms and conditions carefully.

• Comparing terms and fees offered by different forex platforms.

• Be well-prepared through research and confirm the market and its direction.

2. Lack of relevant knowledge and systems

I didnt know how to execute my orders, selling out when hit by a fall and buying in when seeing a rise. Before long, I suffered a loss worth 20% of my capital.

Lessons are presented as follows:

• Fully comprehend trading charts and understand the market.

• Pay attention to momentum indexes (MTM) amid interday trading.

3. Changing trading systems too frequently

I have tried at least 40 trading techniques and indicators, each of which was not used for more than a month.

One lesson is concluded:

• Try all functions of a system at least within 4 to 8 weeks.

4. Neglecting capital management

Although I controlled my loss ratio, I didnt stipulate the number of trading losses in a day. In this case, my overall losses were heavy.

Here are two lessons:

• Set the number of trades allowing to lose in a day.

• Dont breach your own capital management principles.

5. Holding losing positions

I became quite emotional because of losses, thus holding a transaction with the heaviest loss for nearly a week, which worsened the failure further.

One lesson is listed:

• Stop-loss must be set.

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